Good times are certainly back for FCA India as its latest market offering Jeep Compass is all set to turn profitable for the company in the next 45-60 days. The SUV made its India debut on July 31st, 2017 and the bookings were started about two-weeks before the launch. During the launch the company had confirmed 5000 bookings on Jeep Compass already and a report by ET Bureau suggests that the company have now received over 8,100 bookings for its Jeep Compass. The SUV is manufactured at the Tata Group-FCA joint venture plant in Ranjangaon and the company is now set to ramp up the production of Compass to six days a week with two shifts every day. For the first time in a decade, Fiat’s India plant is increasing its scale of production. Tata Nexon is also being manufactured at the same facility and we expect Tata Motors to increase the production of its small SUV once launched in India. The report by ET Bureau suggests that Jeep has so far secured 8171 units for its Compass that equals to revenue of almost $245 million.
FCA India had invested $280 million for the Jeep Compass project and sources say that once the order book crosses 10,000 units Fiat Chrysler would have generated more money than it had invested in the factory to setup the manufacturing lines and local sourcing of components. With the aggressive pricing on Jeep Compass SUV we expect another 45-60 days for Compass to cross its first 10,000 milestone booking. If reports are to be believed then Jeep is currently rolling out about 90 units of Compass SUV every day and is looking to increase it to about 25% to 110 units/day. FCA’s Ranjangaon plant is also a global hub for all right-hand-drive (RHD) markets across the globe, making India a global hub for the production of RHD Jeep Compass. However, production of export bound vehicles is yet to start. Compass has certainly given positive for FCA India and while factually it might be early to call Jeep Compass a runaway success model for the company in India, it certainly has the potential to be turn around the tide for FCA in India.
Jeep Compass is offered in five trims- Sports, Longitude, Limited, Longitude(O), Limited (O) and in five colours- Vocal White, Brilliant Black, Minimal Grey, Hydro Blue and Exotic Red. The design of the SUV is similar to what we have seen on the Jeep Grand Cherokee. It is available with a 1.4L Multiair petrol engine and a 2L diesel engine. The petrol variants of the Jeep Compass are priced between Rs 14.95 lakh – 19.49 lakh (Ex-Delhi) and the Diesel variants of Jeep Compass ranges from Rs 15.15 lakh – 20.65 lakh (Ex-Delhi).
Source: ET Bureau
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